In finance, tracking error or active risk is a measure of the risk in an investment portfolio that is due to active management decisions made by the portfolio manager; it indicates how closely a portfolio follows the index to which it is benchmarked. The best measure is the standard deviation of the difference between the portfolio and index returns.
Many portfolios are managed to a benchmark, typically an index. Some portfolios, notably index funds, are expected to replicate, before trading and other costs, the returns of an index exactly, while others 'actively manage' the portfolio by deviating from the index in order to generate active returns. Tracking error measures the deviation from the benchmark: an index fund has a near-zero tracking error, while an actively managed portfolio would normally have a higher tracking error. Thus the tracking error does not include any risk (return) that is merely a function of the market's movement. In addition to risk (return) from specific stock selection or industry and factor "betas", it can also include risk (return) from market timing decisions.
Dividing portfolio active return by portfolio tracking error gives the information ratio, which is a risk adjusted performance measure.
In finance, trackingerror or active risk is a measure of the risk in an investment portfolio that is due to active management decisions made by the portfolio...
reached on the site. Another method of tracking traffic to 404 pages is using JavaScript-based traffic tracking tools. Internet portal Computer programming...
of the investment and the returns of the benchmark) divided by the trackingerror (the standard deviation of the active return, i.e., the additional risk)...
include tracking prominent indices like the S&P 500 or the Dow Jones Industrial Average or implementation rules, such as tax-management, trackingerror minimization...
PIV error in unsteady flow applications and its effect on turbulence spectral quantities and kinetic energy. The bias error in particle tracking discussed...
alpha and the portfolio's trackingerror: max w α T ( w − w 0 ) ⏟ Tax Alpha − λ 2 ( w − w B ) T Σ ( w − w B ) ⏟ TrackingError {\displaystyle \max _{w}\;\underbrace...
exchange-traded fund, and "track" an index. The difference between an index fund's performance and the index, if any, is called trackingerror. Stock market indices...
applications in computer science and telecommunication, error detection and correction (EDAC) or error control are techniques that enable reliable delivery...
is the "trackingerror", the deviation of the center of the wheelset from the straight line of the railway running down the center of the track (midway...
domains, a final pitch track can be computed using dynamic programming. The advantage of these approaches is that the trackingerror in one domain can be...
that aim to limit market and reputational risks while keeping a low trackingerror and a similar risk-return profile to the respective benchmark. In 2019...
Bond Pricing Service (‘EVB’) to improve pricing accuracy, minimise trackingerror and safeguard the independence of the indices. iBoxx coverage spans...
these two diodes conform the trackingerror signal that the system uses to keep the optics in the proper track. The tracking signal is fed to two systems...
Trial and error is a fundamental method of problem-solving characterized by repeated, varied attempts which are continued until success, or until the...
pose tracking system detects the precise pose of head-mounted displays, controllers, other objects or body parts within Euclidean space. Pose tracking is...
data-storage capacity in applications such as product tracking, item identification, time tracking, document management, and general marketing. The QR code...
the elasticity of options In analytical investment management, the trackingerror of an investment manager Other: Used in place of ん in Japanese typing...
system during the pth repetition, e p {\displaystyle e_{p}} is the trackingerror during the pth repetition and K {\displaystyle K} is a design parameter...
companies to trace sources of specific business data for the purposes of trackingerrors, implementing changes in processes, and implementing system migrations...
value of the relative return is often called the trackingerror, which is confusing since the trackingerror is more generally defined as the standard deviation...
implies a null error in tracking the reference. A constant rate of acceleration of the reference implies a constant error in tracking the reference. The...
out-of-date set of portfolio proportions. This is related to the topic of trackingerror, by which stock proportions deviate over time from some benchmark in...
portfolio risk, performance attribution, Value-at-Risk (VaR), managing trackingerror and GIPS verification. It is also said to cover the following developing...
In computer programming, error hiding (or error swallowing) is the practice of catching an error or exception, and then continuing without logging, processing...
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